Pricing Tip: You Can’t Just Increase Your Rates

I'm anti "charge what you're worth" and "just double your price". LOL. 

And if you follow anyone who is teaching how to run a business using bumper sticker mantras like these, I encourage you to find a professional who has experience running a business based on economics and data. 

You can't just increase your pricing or charge $XXX because every other designer you know charges $XXX. Sure, that can give you some confidence around your pricing to know you're aligned with industry standards, but here's what's really key when it comes to pricing:

01 | YOU know your clients best.

YOU know what your clients will bear when it comes to pricing. You must consider your ideal client type when establishing your pricing.

If you're hoping to work with newlyweds vs. retirees who are purchasing vacation homes they plan to pass down, your pricing will be majorly impacted by who you plan to serve.

02 | Your market must support your pricing.

Most of my designers work with local clients. This means, their pricing has to align with what their market will bear (unless they are so niched down or have incredible marketing). For example, I'm in the Chicago and Lake Geneva areas and these markets will bear just about any price. Nothing seems crazy here. $2,000 to paint a 6x6 entryway? Sure.

YOU know your market best.

03 | YOU MUST BE CONFIDENT IN YOUR NUMBERS.

Even if your market bears a $450 hourly rate and 100% markup, if you don't feel confident charging those prices because you don't feel qualified or you're not ready yet, you will find ways to sabotage yourself and your pricing, like:

...maybe by going totally out of scope and not charging (because you feel guilty they paid you so much so you must add more in)

 ....maybe by not billing for all the hours worked

....maybe by moving outside of your process because someone is paying you a lot of money so you feel like they should be able to tell you what to do

.…maybe by NOT promoting your services because you're afraid of your pricing

....maybe by falling over yourself and giving away your favorite child, your house, and the keys to your car on discovery calls because you feel so uncomfortable with your pricing

If you aren't confident in your numbers, you will have a heck of a time convincing a client to feel confident in them.

04 | And, your marketing MUST align with your pricing.

Do you want to show pictures of vases you bought from Target? Or do you want to show what your presentations look like, what your renderings look like, what your finished rooms look like, what happens behind the scenes when you're working on a project, what your clients will experience when they hire you.  

Plus remember, pricing is marketing. 

Price your services at $100 versus $10,000 and that INSTANTLY says something to your audience about your expertise, value, and client experience.

Need help sorting out your pricing? Grab The Complete Guide to Pricing Your Design Services here.

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